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2014 (4) TMI 435 - AT - Income TaxAddition of LTCG – Surrender of tenancy rights – Held that:- All the transactions are contained in a single document, just by differently wording that the assessee got the reversionary right by paying small amount for improvement in the title to the ownership cannot support the contention of the assessee that he has acquired only lease hold interest as the reversionary right - the working by the AO as to the long term capital gain earned by the assessee on relinquishment of tenancy right is sustainable. The decision in CIT Vs. D.P. Sandu Bors. Chembur P. Ltd. [2005 (1) TMI 13 - SUPREME Court] followed - the tenancy right is a capital asset, the surrender of the tenancy right is a transfer and a consideration received is a capital receipt within the meaning of section 45 – thus, the contentions of the revenue is accepted that the assessee had acquired the new flat in lieu of the surrender of tenancy right in addition to the payment of the consideration and the difference in value that is Government value of the flat purchased by the assessee which is determined as the fair market value of the flat minus the consideration paid by the assessee is to be equated with the consideration received by the assessee for the relinquishment of the tenancy right in the erstwhile flat possessed by the assessee and the same is liable to be taxed as long term capital gain – there is no infirmity in the order of the CIT(A) – Decided against Assessee.
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